Welcome to DreamTai Stock Trading Software blog.
Here, DreamTai members can post their views, ideas, opinions and list of stocks which they like and which have given a Buy Signal or Sell signal by DreamTai stock Trading Software.

Monday, October 22, 2007

The evidence suggests that trend following can work well on stocks. Buying stocks at new all time highs and exiting them after they’ve fallen below a 10 ATR trailing stop would have yielded a significant return on average.

The evidence also suggests that such trading would not have resulted in significant tax burdens relative to buy & hold investing.

Test results show the potential for diversification exceeding that of the typical mutual fund. The trade results distribution shows significant right skew, indicating that large outlier trades would have been concentrated among winning trades rather than losing trades. At this stage we are comfortable answering the question “Does trend following work on stocks?” The evidence strongly suggests that it does.

Saturday, October 20, 2007

Before the Friday Oct 19 crash, the markets had already been showing signs of weakness.

Notice how the price bars in DreamTai turned RED a few days before.Now the market is at a very important level, which is the 50 day moving average (shown by pink line in DreamTai)Surprisingly, Nasdaq remained strong. The QQQQ closed at the 20 day moving average support level (Blue line in DreamTai)

One possible scenario is that the market can crash and break down below the 50 day moving average level, at which stage the stock market is officially BEARISH.

Another scenario is that the market will use the 50 day moving average as support and rise up again.

Yet another scenario is that the market will just chop around the moving averages for some time till it decides the next course to take.

Let us wait and see what happens next.

It is safer not to enter any long positions and to tighten the stops on the existing positions.

Wednesday, October 17, 2007

For the first time ever, Wallstrip hires a private investigator to find out why a company is doing so well. Lifeway Foods, Inc. (LWAY) Please send flowers and cards to Beth Israel Hospital, N.Y., New York

This Stalking Stocks commentary video shows several candidates for break out or short sales for at least short term gains by buying the break (or selling the break down) on good volume and closing at least some on the first day. Today including: AEZ, TARR, APOG, LEAP, ABY, KR, RACK, VCLK, NUAN.

Thursday, October 04, 2007

This Stalking Stocks commentary video shows several candidates for break out or short sales for at least short term gains by buying the break (or selling the break down) on good volume and closing at least some on the first day. Today including: PDLI, RVBD, TZOO, MHGC, O, STM, MUHC, INPC.

You can set alerts in many software programs such as the free Quotetracker to alert you to when a stock is close to the buy point.

A pair of academics at MIT have published a paper that seems to confirm the Rothman Theory of this summer’s Quant Bloodbath. The Rothman Theory held that the initial quant fund losses were triggered a large hedge fund unwinding one or more market-neutral portfolios.

Now Amir E. Khandani and Andrew W. Lo have used financial models to simulate this summer’s bloodbath, and what they found largely confirms the Rothman Theory.

Their findings suggest that the quantitative nature of the losing hedge funds was incidental, and the main driver of the losses in August 2007 was the firesale liquidation of similar portfolios that happened to be quantitatively constructed. That firesale was likely set-off by a hedge fund facing margin calls or seeking to pre-emptively reduce risk after its credit portfolio was hit by this summer’s collateral and credit crunch.

Parallel universes really do exist, according to a mathematical discovery by Oxford scientists described by one expert as "one of the most important developments in the history of science".

A motorist who has a near miss, for instance, might feel relieved at his lucky escape. But in a parallel universe, another version of the same driver will have been killed. Yet another universe will see the motorist recover after treatment in hospital. The number of alternative scenarios is endless.

Microsoft announced Office Live Workspace, which is basically an online document sharing system. TechCrunch and Read/Write Web are a little less than impressed, but the Between the Lines blog and InsiderChatter are a little more supportive.

Not wanting to feel left out of the mad dash for office suites, Adobe bought the maker of Buzzword.

eBay is not as excited about Skype as it once was. In fact, I think they're rather sorry about the whole thing.

An interview with Joost CEO Mike Volpi.

The techworld has a new Hot 100. Oh, here's the old Hot 100. TechCrunch has the write-up.

Radiohead's new album costs whatever you want to pay. Bob Lefsetz hopes it's for real.

Uh Oh, there STILL may not be enough Wii's for the holidays

Nintendo can't make Wii's, but they sure can make DS's. They sold more than 50 million of 'em in 3 years. That's twice as many as the poor PSP.

Monday, October 01, 2007

Apple software upgrades are supposed to help you, but the latest one killed all third party software, such as GPS software that 80,000 people downloaded. This software isn't technically illegal but Apple is allowed to make whatever rules it wants. Gizmodo and Machinist both say forget about the iPhone.

The Internet can be dangerous to an oppressive regime, so the government of Myanmar shut it off. Fortunately there are still a few sites left reporting.

You can't deposit funds at Netbank anymore, but you can get a job there.

Disney's cell phone service going the way of Steamboat Willie.

Gamedaily estimates Microsoft sold 2.34 million copies of Halo 3 in 24 hours.

Newt Gingrich made a visit to Second Life. Yes, it was totally strange.